I currently manage and pay for 4 websites and one mush. I think I probably pay about $400.00 a year for all of these services combined.
I like these services because someone else takes care of support, security, and patching. I don't like these services because I lose some flexibility.
In the last year or so, virtual private servers have gained some traction - it looks like a year on a vps server with 512 RAM would cost me $240.00 (and my time). I liked the idea of dedicated servers, but they are waaaay out of my price range.